₦airaland Forum

From which politician??

Hmmmm

Abuja, April 6, 2026 – It’s a serious issue! Despite the Federal Government’s Naira-for-Crude arrangement designed to help local refineries access enough crude oil, the Dangote Refinery has finalized plans to import 13.62 million barrels of crude oil for May 2026.

What’s Really Happening With Dangote Refinery’s Crude Import?
This massive import, valued at ₦2.097 trillion, represents about 72% of the 19 million barrels the refinery requires for the month. The Federal Government is expected to supply only 6.15 million barrels, leaving a significant shortfall the refinery must cover through imports.

At the current international price of $110 per barrel, the 13.62 million barrels will cost about $1.498 billion, equivalent to ₦2.097 trillion at an exchange rate of ₦1,380.79 per dollar. This development has raised major concerns across the oil and gas sector.

Fuel Price Hike Looms – Experts Sound Warning
Industry experts have expressed worries that such heavy reliance on imported crude could keep petrol prices high in Nigeria.
Dr. Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), warned:

“Speculation and price hikes will become normal. Once prices begin to rise and trend upward, transport costs will increase sharply, leading to serious inflation in food prices and other essential goods.”

Dangote May Prioritize Exports to Stay Afloat
Mazi Colman Obasi, National President of the Oil and Gas Service Providers Association of Nigeria (OGSPAN), explained:

“The Dangote Refinery was not built to depend solely on Nigerian crude. If imports become necessary, it must export refined products to remain financially viable. While exports can generate foreign exchange, they may not significantly improve living conditions for ordinary Nigerians.”

Why Is Nigeria Still Importing Crude Despite Being an Oil Producer?
Jeremiah Olatide, CEO of Petroleumprice.ng, described the situation as paradoxical:

“Nigeria is a major oil producer, yet its largest refinery still imports crude. The government must boost domestic supply, strengthen upstream production and security, and reinforce the Naira-for-Crude framework.”

Another industry expert, who preferred anonymity, added that importing dollar-priced crude increases feedstock costs, reduces refining margins, strains foreign exchange reserves, and exposes the country to global market risks.

Federal Government Renews Supply Promise
The government has once again promised to increase crude supply to local refineries. However, similar promises in the past were not fully realized due to limited crude availability. For instance, during the first half of 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) missed its supply target of 770,500 barrels per day.

Presidency Defends Naira-for-Crude Initiative
Temitope Ajayi, Senior Special Assistant to the President on Media and Publicity, insists the Naira-for-Crude initiative—launched on October 1, 2024—has helped shield Nigeria from global energy disruptions. He emphasized that the Dangote Refinery has improved product availability, eliminated fuel queues, and even reduced petrol prices by ₦75 per litre in recent months.

The Street Newspaper will continue monitoring developments around the Dangote Refinery’s crude import plans as Nigerians await to see how this move will impact fuel prices and the general cost of living in the coming weeks.


Trump Bump!

A.nother

D.isaster

C.oming